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The institutionalisation of supply chain management

Ismay, Cedric Ronald (2008-03)

Thesis (MPA (School of Public Management and Planning))--Stellenbosch University, 2008.

Thesis

Within the context of South African government departments, Supply Chain Management (SCM) is a fairly new discipline that was introduced in 2003 in order to move away from the rule-based procurement system to an integrated SCM system that would promote the New Public Management model by means of improved financial management, efficiency, efficacy and economy in the public sector and provide value added goods and services to the customers of government. Government action is primarily driven by legislation. Accounting officers of government departments, management teams and other levels of staff are faced with the problem that they need to have a sense of and understanding of the values or principles entrenched in the legislative framework affecting SCM that require institutionalisation in their organisations to support the “living” of SCM in those organisations. The aim of the thesis is to identify the principles or values entrenched in the concept of SCM and the legislative framework at a high level that will assist public sector organisations to institutionalise SCM in their organisations and that supports the evolutionary implementation process of SCM. As SCM is not a new terrain in the global context information was collected by means of a literature study on the subject of SCM. The study incorporates the philosophy, phenomena, processes, practices, and activities relating to the institutionalisation of SCM. In addition, South African statutes relevant to SCM will be examined. Other relevant public sector documents such as green papers, white papers, departmental annual reports, budget statements, organisational structures, reviews, policy documents, guideline documents, reports, strategic plans and best practice documents will also be consulted.
The principles and values contained in the concept of SCM and those entrenched in the legislative framework that relates to SCM are similar. Institutionalisation of SCM is manifested in South African statutes and is an evolutionary process. Failure to institutionalise the SCM and legislative principles and values affect both the organisation and the customer. At all levels institutionalisation of SCM demands leadership; organisational and behavioural change; integration; commitment; excellence; communication; teamwork; long term relationships; trust; risk, benefit; reward; information sharing; joint planning; positive attitudes; participation; an ongoing process of learning, training and development - changes the mindset; all of which is best supported by a team of professionals and proper units of measure.
The evidence in this thesis suggest that the institutionalisation of the values and principles entrenched in the concept of SCM and the South African legislative framework related thereto will assist public sector organisations with the evolutionary implementation process of SCM. The consequential “living” of SCM in public sector organisations will enhance the quality of financial management, but more importantly provide value added goods and services to the public as customers of government. Negative attitudes and behaviour of people in the public sector SCM environment must be overcome through change management processes in order to implement SCM at the desired pace and scale.

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